Matthew  Salciccioli

Matthew Salciccioli

Sales Representative

Faithwilson | Christie's International Real Estate, BROKERAGE*

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Pre Construction vs Resale What Is The Better Investment For You?

The pre-construction vs. resale question comes up quite frequently from my clients looking to purchase real estate in the Vancouver region. let’s weigh out the pros and cons of both investment strategies so you can decide which option would work best for you:

Pre-Construction Cons:

  1. New construction projects today are more expensive than the resale market.
  2. Your investment is sitting with a developer for several years, and sometimes projects can be cancelled due to funding or can be delayed by years, especially now due to Covid supply issues.
  3. Additional tax applies to new properties in BC. An additional 5% GST tax is applicable for new homes.
  4. Selling before the unit is completed (Assignment Sale) can incur additional fees with the developer. I have seen fees of $5,000 or $10,000 charged.

Pre-Construction Pros:

  1. You are able to pay initial deposits in instalments over the course of 1 or 2 years with some developers. Typical deposit structures range from 10% to 20%.
  2. You can select your dream floor plan and/or add the custom finishes or colours of your liking to a specific plan to make personal touches. Also access to the newest smart home technology.
  3. You can be the first to live in the specific unit you’ve designed.
  4. You can plan out your retirement or move in over the course of the construction process.

Resale Cons:

  1. At the moment, low inventory might cause you delays finding a property right away, and/or you may  have  to compete in to multiple offers.
  2. You might have to repaint or renovate to your liking which can cost additional budgeting on top of mortgage payment.
  3. You may have to live in a construction zone during the renovations or find another temporary home in the mean time.

Resale Pros:

  1. Your capital is deployed right away and your money is either collecting rent or you are beginning to generate appreciation for as long as you hold the property.
  2. No additional tax on the listing price. Since the property is not new, you do not have to pay additional 5% GST tax on the property.
  3. You have access to putting down a deposit of 5%, 10%, 15%, 20% or more down on your mortgage.
  4. Less expensive than pre-construction. Most of the time, you can purchase a better unit in a better location and also a bit larger in square footage as opposed to buying brand new. In real estate we always say ‘Location, location, location!’


Yes, there are more pros and cons for each segment but hopefully this can get you thinking which option works best for you. If you have any questions or need help picking one of the two options contact me below and I can help you choose an option or guide you in the right direction!

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